US inflation rises to 1.8% in June

Annual US consumer price inflation hit 1.8% in June as clothing, petrol and services costs all increased.

That was up from the 1.4% figure recorded in May but still below the target inflation figure of 2%.

The consumer price index increased by 0.5% in June from the month before.

The US economy is growing more strongly than most of Europe, but unemployment has put downward pressure on wages, making it harder for retailers and other firms to raise prices.

Most of the month-on-month price increase was attributed to the rising cost of petrol.